Airtel Mulls UK Listing of Mobile Payments Unit in Dollars

By Adedapo Adesanya

Airtel Africa Plc is considering listing its mobile payments subsidiary, Airtel Money, in US Dollars when it debuts on the London Stock Exchange (LSE) later this year, in a move that could make it one of the few companies to pursue a Dollar-denominated listing in the UK market.

According to Bloomberg, the group is evaluating whether to price Airtel Money’s shares in US Dollars rather than British Pounds Sterling to align with its reporting currency, citing people familiar with the matter.

The publication also reported that more banks have been invited to work on the deal, including lenders based in Africa and the Middle East.

The business is reportedly targeting a valuation of about $10 billion, which would make it the largest new flotation in London since July 2021, when British fintech Wise was valued at nearly £9 billion in a landmark direct listing.

Earlier this month, Mr Gopal Vittal, executive vice-chair of Bharti Airtel, said the company’s finance business has “achieved meaningful scale”, with quarterly revenue now exceeding $400 million.

He said the business has been growing by 25 per cent annually on a constant-currency basis. The opportunity remains significant, as nearly 65 per cent of adults across Airtel’s African markets still do not have access to formal bank accounts.

Airtel Money has a wide presence in Africa, including Kenya, Nigeria and Tanzania. Unlike in India, where Airtel operates its finance business as a payments bank, Airtel Money in Africa operates independently of the banking system. In Nigeria, Airtel Money operates through its licensed subsidiary known as SmartCash Payment Service Bank Limited

The service allows customers to transfer money through the mobile network, pay bills, and make international payments through virtual cards.

Airtel believes a London listing would give Airtel Money access to a broader base of investors than a listing in India or other places previously considered, including the United Arab Emirates (UAE).

Airtel Africa, which operates in 14 countries and is dual-listed in London and Lagos, is majority-owned by Indian billionaire, Mr Sunil Mittal, through Bharti Enterprises.

The company is also expanding its financial services business in India. In February, it secured a licence from the Reserve Bank of India to operate as a non-banking finance company (NBFC).

The licence allows the business to expand its operations, disburse loans, offer microcredit products and develop other financial solutions. Airtel also has access to digital data from its telecoms business, which it can use to improve its financial products.

Following the NBFC licence, Airtel announced a $2.2 billion (Rs200 billion) capitalisation plan for its finance arm.

A London listing would therefore mark a major step for Airtel Money, transforming it from a small unit within the telecoms business into a separately valued company with room to expand across Africa and India.

The UK is also strategically important to Mr Mittal, who is now the largest shareholder in British Telecom with a 24.95 per cent stake. Airtel Money’s planned listing would give the billionaire a second major footprint in the London market.